ICB posts historic profit

Tanzania’s International Commercial Bank (ICB) last year net profit climbed by almost fifty times to 1.418bn/- compared to what it generated in the previous year, thanks to foreign exchange, commissions and fees.

The bank statement published yesterday attributed the good profits mainly to non-interest income that generated 3.95bn/- compared to net-income interest 2.4bn/-.

However, last year’s non-interest income was down by over a billion shilling in comparison to the last year’s income that posted 4.98bn/-. And net income climbed by about 80 per cent.

The profit jump also was boosted by low fund set aside for impairment losses on loans and advances that were cut down to 107m/- from 1.9bn/- of the previous year.

The profit of ICB, which has six branches all in Dar es Salaam, pushed up basic earning per share from 2/- to 120/- of last year. It also increase return on average shareholders fund from zero per cent to 12 per cent.

The bank assets shrunk slightly from 92.6bn/- of previous year to 80.3bn/- of last year due to the decision to reduce investment on other securities by almost 40 per cent.

The foreign exchange transaction contributed 1.2bn/- and commission and fees 1.3bn/- while other operating income generated 1.45bn/-to close the year with 3.95bn/-.

The ICB-Tanzania is a subsidiary of the ICB Banking Group, which is incorporated in Switzerland and is listed on AIM market of the London Stock Exchange.
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